1. P. Kim Sturgess, P.Eng. FCAE Canadian Water Summit June 14, 2011 Water – Energy Nexus: The Evolving Story

2. Think Globally.. Plan Regionally.. Act Locally Whiskey is for Drinking…Water is for Fighting Over.

3. Steven E. Koonin, Under Secretary for Science, U.S. Department of Energy Total = 12,500 km3

4. Steven E. Koonin, Under Secretary for Science, U.S. Department of Energy

6. 6 Estimated annual world water use by sector 1900 to 2000 – another 40% increase by 2020* Courtesy: Dr. A. Zehnder AWRI *Source: United Nations Environment Programme

7. Do we have enough WATER to grow the food??? Steven E. Koonin, Under Secretary for Science, U.S. Department of Energy

9. 9 Environmental and apportionment requirements are not considered by this measure. Source: Population Action International, 1997 (Courtesy of Wendy Brown, TEPCA) Water Resources in Canada and Alberta

10. Canadians do not show up well on OECD Environmental Water Indicators Trend Since 1980, overall water use in Canada has increased by 25.7%. This is five times higher than the overall OECD increase of 4.5%. In contrast, nine OECD nations were able to decrease their overall water use since 1980 (Sweden, the Netherlands, the United States, the United Kingdom, the Czech Republic, Luxembourg, Poland, Finland and Denmark).

11. Perception that we squander water exacerbates issue of water use in resource extraction “Wild unregulated pillaging of the environment at the expense of the First Nations … that is what the Europeans think of us.” Minister Rob Renner (Chamber of Commerce May 25, 2010) “More and more our investment partners are trying to steer us away from investments in oil sands and coal technologies.” Scott MacDonald, Partner Emerald Ventures (June 12, 2010) Protestors demonstrate outside the U.K. headquarters of BP in London on Sept. 1, 2009. Protestors earlier targeted the head office of a leading bank, demonstrating against the bank's investments in fossil-fuel projects, especially funding for the coal industry and tar-sands extraction in Canada.

12. Food Energy Water Tradeoff Food Water Energy This is the challenge of Public Policy in Alberta

13. Adaptation strategies are very different North and South

14. Estimated Annual Water Use was 3.2 billion cubic metres in 2005 69% 6% 5% 6% 14%

15. Oil and Gas Industry most likely to adapt Challenges: South Saskatchewan: Scarcity. This industry usually last priority for water Lower Athabasca: Social license to operate

16. Alberta Water Allocations and Estimated Use Source: Alberta Environment

17. Water use in Agriculture and Energy Billions, m 3

18. Annual water consumption forecast for power generation in Alberta* *by type of power generation Note that water consumption scale begins at 100,000,000 m3

19. Upstream Petroleum Industry Fresh Water Demand Forecast Extraction Only OS- Tailings Integrated OS - Tailings Extraction Only OS – Proc.& Other Integrated OS - Cooling Note: Fresh Water Demand for the Oil Sands operations is the water withdrawn from the River; does not include fresh water collected on site

20. South Saskatchewan Region Estimated Water Use by Sector Estimated Water Use 2.4 billion m 3 per year

21. The Surface Water Supply in the North is large Source: Alberta Environment

22. Athabasca has a large Environmental Base Flow Source: Alberta Environment

23. Lower Athabasca Region Estimated Water Use by Sector Estimated Water Use 0.124 billion m 3 per year* * 5% of water use in South Saskatchewan region

24. Challenge of Tailings Ponds remains

25. The Oil Sands Leadership Initiative 25 Alberta Environment, Alberta Energy and SRD participate as observers Five founding companies : www.OSLI.ca

26. Major investments in Technology in Oil Sands Advanced boiler technology that could take untreated (or lesser- treated) water directly Ceramic membranes for more efficient SAGD de-oiling & filtering Tailings recovery technology allows for faster reclamation of tailings areas and higher water recycle rates

27. Challenge:  Currently operators in the oil sands region are working independently to solve their individual water sourcing and disposal needs. Project Objective:  Lower the regional environmental impact (water, land, wastes, GHGs) Project Description  Examine the potential to reduce environmental impact through regional collaboration. Potential Benefits  Lower regional Environmental Net Effect  Reduce tailings liability  Establish reliable SAGD water sources  Accelerate tailings reclamation Regional Water Solutions Project* 27 Regional Alternative Sub-Regional Alternative *Diagram for illustration purposes only - may not show all current, planned, or proposed projects

28. Water: The Key to Our Sustainable Future For more information: www.waterportal.ca www.albertawatersmart.cominfo@albertawatersmart.com Kim.Sturgess @albertawatersmart.com